Making sure your loyalty program is creating loyal customers
By Laura Andrews
Loyalty programs are twofold. They are a great way to keep your customers engaged and at the same time, a great way to acquire customer information.
So why use one?
Here’s why. With a loyalty program you can:
- Acquire new customers and increase your customer base
- Increase how much a customer spends overall by offering discounts on new products to try
- Increase customer retention by helping them feel involved and invested in your brand
- Give customers incentives to purchase more expensive products
- Reconnect lapse customers to your brand by offering incentives to lure them back to your brand
Now that we all agree that loyalty programs are great in acquiring and retaining customers (right?), let’s talk about marketing. Here are three actionable steps that you can do to market your loyalty program right now.
1) Create a message of relevance
The perceived value of a reward is more important than the actual percentage or dollar reward. Let’s think about that. That means that customers care more about the value they feel they are getting than the actual dollar amount off or coupon. Remember to make sure you’re offering something of real value to your customer and you’ll help ensure customer loyalty.
2) Thank your customer
Who doesn’t love getting a thank you? Your customers certainly do. Thank them by offering a discount, coupon or additional perk that they can only get because they are your customer. This can be done through e-mail marketing or social media. Use the marketing channels where your company frequently interacts with your customers.
3) Move your customer from brand to product
Your customer might love your brand but still not purchase your product. As frustrating as that sounds, it happens all of the time. Think about how much you may drool over that expensive new watch, shoe or piece of technology but you still don’t purchase it. If your customers are loyal to your brand, give them incentives to try your products. Give them samples or coupons to try your product and then ask for their feedback. Make them feel like a part of the process and involved in your brand. They’ll keep coming back.
A loyalty program should make your customers feel like VIP members in an exclusive club. Customer want to feel special and companies have the power to do that.
loyalty programs are fantastic ways to build…well…Loyalty! Getting it right isn’t always easy though. If you’re looking for more ways to make the most out of your marketing program (and avoiding some of the costly or time-sucking pitfalls ), why not subscribe to the RipList?
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